Mercury General Corp.laid off approximately 100 employees, most of whom are located in the New Jerseyand Florida branch offices. The workforce reductions represent less than 3% of itsworkforce.

The layoffs are part of a restructuring of its claims operationsin states outside of California to improve operating efficiencies and overall long-termprofitability,

Mercury General said in a Form 8-K filed May 2 that it expectsto record a charge in the second quarter of approximately $2 million for employeetermination and severance costs. The total annual pretax cost savings that are expectedto result from the reduced headcount is estimated to be $7 million.